Suncorp net profit falls 44% due to high weather-related claims

Suncorp, Australia’s largest insurer, reported a 44 per cent drop in net profit to $1.03 billion for the year ending June 30. The decline follows a year of significant natural disasters that resulted in $10.1 billion in claims, exceeding the company’s natural hazard allowance by more than $254 million.

The insurer noted that over 120,000 claims were filed due to 32 weather events across Australia and New Zealand. Notable among these were severe thunderstorms and hailstorms in southeast Queensland, which caused payouts to exceed allowances by nearly half a billion dollars in the latter half of the year.

In response to the financial results, executives announced a $250 million share buyback and a special 10 cent per share dividend. CEO Steve Johnson stated that the company has simplified its operations and maintains broad reinsurance arrangements, including a $2.4 billion reinsurance policy that commenced at the end of June to provide future financial protection.